A share of common stock just paid a dividend of $1.00. If the expected long-run growth...

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A share of common stock just paid a dividend of $1.00. If the expected long-run growth rate for this stock is 5.1%. and if investors' required rate of return is 11.4%, what is the stock price? 8. Gabe purchased 100 shares of stock at a price of $45 per share. One year later, the shares are selling for $47 per share. In addition, a dividend of $4 per share is paid at the end of that first year. What is the dividend yield for the investment? 9. The Home Market has adopted a policy of increasing the annual dividend on their common stock at a constant rate of 3.75% annually. The finn is paying an annual dividend of $1.10 today. What will the dividend be six years from now? 2 A share of common stock just paid a dividend of $1.00. If the expected long-run growth rate for this stock is 5.1%. and if investors' required rate of return is 11.4%, what is the stock price? 8. Gabe purchased 100 shares of stock at a price of $45 per share. One year later, the shares are selling for $47 per share. In addition, a dividend of $4 per share is paid at the end of that first year. What is the dividend yield for the investment? 9. The Home Market has adopted a policy of increasing the annual dividend on their common stock at a constant rate of 3.75% annually. The finn is paying an annual dividend of $1.10 today. What will the dividend be six years from now? 2

Answer rating: 100% (QA)

7 To calculate the stock price using the dividend discount model we can use the following formula St... View the full answer